Bihar's ₹10,000 logic: Balancing women's support with budget

Patna: The announcement of cash schemes for women has become a common pre-election practice across party lines. In recent elections, almost every political party has relied on this tried and tested formula. Ahead of the Bihar polls, the state government too debated whether it could afford such a scheme given budgetary constraints.

The discussion intensified after Leader of Opposition Tejashwi Yadav promised a monthly payment of ₹2,500 to women if the INDIA bloc came to power. With 11 lakh women Self Help Groups (SHGs) in Bihar - directly linking about 1.5 crore women with government programmes - the NDA government had to weigh its options. Officials later added another 50 lakh potential beneficiaries, fixing the total at two crore women.

A monthly transfer of ₹2,000 per woman would have meant an outlay of ₹4,000 crore, or ₹48,000 crore annually - a burden the state budget could not sustain. After discussions, the government opted for a one-time support of ₹10,000 to women associated with Jeevika, aimed at helping them start businesses. Officials said Jeevika was chosen for its robust system of accountability in handling government funds.

As per the plan, a review will be conducted six months after disbursal, and women found in need of further help can receive an additional ₹2 lakh in four instalments of ₹50,000. However, the government has not mandated disclosure of the type of business to be started, nor will it seek refunds if the funds are not used for entrepreneurial purposes.

On September 26, Prime Minister Narendra Modi launched the Mukhyamantri Mahila Rojgar Yojana by transferring ₹10,000 each to 75 lakh women under Jeevika, costing the government ₹7,500 crore. The rollout will continue in phases: on October 3, Chief Minister Nitish Kumar will transfer funds to another 25 lakh women, followed by another round on October 24, with transfers scheduled up to December 19.

So far, ₹15,000 crore has been earmarked for the scheme, which may rise to ₹20,000 crore if an additional 50 lakh women are included. Sources told ET that the staggered transfer schedule is designed to ensure the scheme continues even after the election code of conduct comes into force.